Starbucks Corporation (SBUX) Fundamental Checkup
Starbucks Corporation fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of September 4, 2026.
By TGMCharts Research · Data as of · Updated
The operational profile of Starbucks Corporation presents a mixed picture where long-term expansion trends, including a five-year revenue CAGR of 7.16% and an EPS CAGR of 15.61%, contrast with a net margin of 5.17% and a return on invested capital of 10.00%.
A comprehensive assessment weighs top-line expansion, earnings conversion, cash generation, and balance sheet constraints. Liquid coverage is tight with a current ratio of 0.76x, while leverage is reflected in a debt-to-equity ratio of -2.92x.
- Starbucks Corporation has market cap of $119.10B and closed at $104 on September 4, 2026.
- Five-year revenue CAGR is 7.16% and five-year EPS CAGR is 15.61%.
- Five-year free-cash-flow CAGR is 84.65%.
- Net margin is 5.17% and ROIC is 10.00%.
- Current ratio is 0.76x and debt-to-equity is -2.92x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
An Integrated Assessment of Long Term Expansion and Capital Efficiency
Analyzing Starbucks Corporation requires an integrated look at whether top-line expansion, cash generation, capital efficiency, and balance sheet leverage align to support the current equity valuation. With the stock trading at $104 as of September 4, 2026, this fundamental checkup isolates core operating metrics from market sentiment to determine if the underlying business supports the current market price.
The core analysis reconciles a five-year revenue CAGR of 7.16% with a five-year EPS CAGR of 15.61%. Comparing these metrics against a five-year free cash flow CAGR of 84.65% provides a clear view of how effectively operational expansion translates into actual cash for equity holders.
Current compounder snapshot · SBUX
Live supporting context; not part of the article's frozen 2026-09-04 evidence snapshot.
- Score
- 16/100
- 10Y CAGR
- 6.9%
- Median YoY
- 7%
- YoY volatility
- σ 15.3pp· uneven
- Quarters ≥ 20%
- 2 of 40
- Negative quarters
- 10
- Valuation vs own 10Y history
- P/S 3.1x · 10Y median 3.5x · 34th percentile · as of Sep 4, 2026
How this score is computed
- Quarters at or above 20%: 2 of 40 → 2 of 40 pts
- Steadiness (typical swing 15.3pp) → 14.1 of 25 pts
- Pace (median 7% YoY) → 0 of 20 pts
- Latest quarter (-1.4% YoY) → 0 of 15 pts
- Score: 16 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Operational Context and Sector Performance Metrics
As an operator within the Consumer Cyclical sector, the company must be evaluated through its specific financial footprint. This research note consolidates growth, profit margins, capital returns, and capital structure metrics into a unified view, establishing a baseline of corporate performance before diving into detailed historical trends.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
SBUX revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 7.16%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 7.16% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Reconciling Top Line Growth and Diluted Shareholder Returns
An essential test of corporate health is whether top-line expansion translates into per-share profitability. While five-year revenue has grown at a CAGR of 7.16%, diluted EPS has advanced at a CAGR of 15.61%. However, recent trailing twelve-month figures show a divergence, as revenue continues to rise while net income and EPS have trended downward.
This gap suggests that rising operating costs or non-operating expenses are diluting the impact of sales growth for equity holders. When net income falls despite rising revenues, analysts must look closer at cost structures and margin trends to see if the business is losing efficiency as it scales.
SBUX EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 15.61%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 15.61% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Free Cash Flow Trends and Cash Conversion Quality
Evaluating earnings quality requires looking at cash flows. The company has achieved a five-year free cash flow CAGR of 84.65%, and recent trailing twelve-month free cash flow has risen. This positive cash trend provides a counterweight to the decline in trailing net income.
The divergence between rising cash flow and falling net income can stem from working capital adjustments or changes in capital expenditure. If cash generation remains robust, it suggests the business retains solid liquidity despite recent earnings pressure.
SBUX free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 84.65%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 84.65% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Evaluating Operating Margins and Capital Allocation Efficiency
Operational efficiency is defined by profit margins and returns on capital. The company currently posts a net margin of 5.17% alongside a return on invested capital of 10.00%. These metrics show how much profit is extracted from each dollar of sales and how efficiently capital is deployed.
When margins contract, it limits the company's ability to convert revenue growth into bottom-line earnings. Monitoring whether ROIC can stay stable or expand provides a clear signal of whether new capital investments are generating adequate returns.
SBUX net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 5.17%. The bars below are annual fiscal years.
Net margin of 5.17% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
SBUX ROIC
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 10.00%.
ROIC of 10.00% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity Constraints and Capital Structure Risk
The balance sheet serves as the foundation for operational growth. Short-term liquidity is tight, as shown by a current ratio of 0.76x. Meanwhile, the capital structure shows a debt-to-equity ratio of -2.92x, reflecting significant leverage.
A leveraged balance sheet paired with a low current ratio limits financial flexibility. If operational cash flow slows down, servicing obligations and funding ongoing expansion could become more challenging.
SBUX debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: -2.92x.
Debt-to-equity of -2.92x and current ratio of 0.76x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Valuation Multiples and Implied Growth Expectations
The market currently prices the stock at a trailing price-to-earnings multiple of 60.04x, which corresponds to an earnings yield of 1.67%. This multiple shows the premium investors are paying for the company's earnings stream.
This valuation sits above the analyst DCF estimate, indicating a negative margin of safety. To justify this premium, the business must reverse its recent net income declines and maintain its historical growth rates.
SBUX Price Chart
Latest close: $104 as of September 4, 2026.
The close at $104 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Weighing Cash Generation Strengths Against Structural Leverage
The positive case for the company rests on its historical revenue CAGR of 7.16% and its strong five-year free cash flow CAGR of 84.65%. If cash generation remains resilient, it can support operations and help manage debt obligations during transition periods.
Conversely, the risk lies in the combination of a tight current ratio of 0.76x and a debt-to-equity ratio of -2.92x. If net income continues to decline, the company's high leverage and premium valuation multiple could face downward pressure.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 7.16% and five-year EPS CAGR of 15.61% support the business case.
- Net margin of 5.17% and ROIC of 10.00% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 84.65% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of -2.92x and current ratio of 0.76x are the balance-sheet checks that can change the view.
Key Indicators for Ongoing Fundamental Assessment
A final reading of the company depends on whether cash flow growth can eventually pull net income back upward, or if margin pressures will continue to drag down earnings. Any future shifts in revenue trends, return on invested capital, or leverage metrics will require a reassessment of this operational outlook.
FAQ
What is the fundamental read on SBUX?
Starbucks Corporation is judged through revenue growth of 7.16%, EPS growth of 15.61%, free-cash-flow growth of 84.65%, net margin of 5.17%, and ROIC of 10.00%.
Which SBUX fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this SBUX checkup refresh?
Its figures are as of September 4, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 7.16%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 15.61%.
- ROIC or balance-sheet flexibility weakening from ROIC of 10.00% and debt-to-equity of -2.92x.
The bottom line
Starbucks Corporation fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: SBUX fundamentalsContinue with Starbucks Corporation's full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-07-29 · period 2026-06-28 · SEC EDGAR source
- “As a result, we recognized a pre-tax gain of $ 536.3 million, which was included in net gain resulting from divestiture of certain operations on our consolidated statements of earnings.”
- “Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In the fourth quarter of fiscal 2025, we adopted the Financial Accounting Standards Board ("FASB") issued guidance expanding segment disclosure requirements.”
- “The adoption of this guidance did not have a significant impact on our consolidated financial statement disclosures.”
- “Recent Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued guidance expanding disclosure requirements related to income taxes.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.